A wallet is a software used to store and access cryptocurrencies. It has a high level of security due to its advanced level of cryptographic encryption. Due to this, it is highly recommended to have a private wallet in which to protect the cryptocurrencies.
It is important to know that there are several types of wallets. These work according to the characteristics of compatibility with the networks in which the cryptocurrencies are transferred. For this reason, when carrying out any operation it is necessary to verify whether the destination address that has been acquired is compatible with the wallet.
Cryptocurrencies are transferred through a blockchain network, one of the safest and most efficient options today. Mainly because in most cases it is much faster than making a bank transfer, as well as being almost impossible to forge. Also, in many occasions the commissions are much cheaper than those of a bank.
There are two types of wallets:
- Hot Wallets: They are connected to the network and are useful for people who want to exchange between different cryptocurrencies or buy and sell constantly in a short time.
- Cold Wallets: They connect to the network when their owner requires it, therefore, they have a higher level of security. Not being connected, it is more difficult for them to try to interact with them remotely. They are useful when you want to keep cryptocurrencies in an even safer place for a long time or when you want to save them without having an interaction or exchange with them (holding). Even of this type you can find physical wallets which are devices that you must connect to the pc in order to interact with it. A popular example is the physical Ledger wallet.
Being BTC (bitcoin), it operates within its own Bitcoin blockchain network. Their addresses are between 26 and 32 characters long, which varies depending on the type of address you use:
- Estándar (P2PKH), which begin with the number 1
- Multi signatures (P2SH), which begin with the number 3
- SegWit, which begin with the acronym bc1
The Banexcoin platform is compatible with the 3 types of existing addresses for BTC.
In case of USDC (USD Coin) being an ERC-20 token, it moves only through the Ethereum blockchain network, the addresses contain at least 42 digits and always start with 0x.
It is important to note that the Exchanges are sites whose main purpose is to facilitate the exchange of cryptocurrencies either for other cryptocurrencies or for Fiat money and not the storage of these, in Banexcoin you can exchange, buy or sell cryptocurrencies for Soles or Dollars and withdraw or deposit using a bank account of which you are the owner.
If you want to know more about how to keep your cryptocurrencies safe you can find more information by clicking here.